Washington: U.S. electric vehicle manufacturer Tesla has cautioned that it, along with other major American exporters, could face retaliatory tariffs in response to President Donald Trump’s aggressive trade policies.
The warning aligns with broader concerns raised by U.S. businesses regarding the impact of Trump’s tariff strategy but carries particular weight coming from Tesla, a key player in the electric vehicle industry.
The company expressed its concerns in a letter addressed to the U.S. Trade Representative’s Office, which was made publicly available on the office’s website. Dated Tuesday, the letter is among hundreds of submissions from companies weighing in on U.S. trade policy. It remains unclear who authored the letter, as it is unsigned but presented on official Tesla letterhead. Tesla has not yet responded to requests for comment.
Tesla emphasized the importance of ensuring that the Trump administration’s trade measures do not unintentionally harm U.S. businesses. The automaker recalled previous trade disputes where retaliatory actions resulted in increased tariffs on American-made electric vehicles exported to countries subject to U.S. tariffs.
“U.S. exporters are inherently exposed to disproportionate impacts when other countries respond to U.S. trade actions,” Tesla stated in its letter. “For example, past trade actions by the United States have resulted in immediate reactions by the targeted countries, including increased tariffs on EVs imported into those countries.”
Trump is reportedly considering imposing significant tariffs on vehicles and auto parts imported from around the world, with a decision expected in early April.
Tesla warned that even with concerted efforts to localize supply chains, sourcing certain key components domestically remains challenging, if not impossible.
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The company advocated for a phased implementation approach, arguing that businesses need time to adapt their supply chains and implement compliance measures effectively.
“As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices,” the company stated.
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Meanwhile, Autos Drive America, a trade group representing major foreign automakers such as Toyota, Volkswagen, BMW, Honda, and Hyundai, also voiced opposition to sweeping tariffs. In a separate submission to USTR, the group warned that broad-based tariffs would disrupt production at U.S. assembly plants.
“Automakers cannot shift their supply chains overnight, and cost increases will inevitably lead to some combination of higher consumer prices, fewer models offered to consumers, and shut-down U.S. production lines, leading to potential job losses across the supply chain,” the group stated.
